Workers came across the articles while digging land for a drain there three days ago, said noted Buddhist researcher Harischandra Prusty.
An idol of Buddha in meditating pose, made probably during post Gupta period, and earthen items like bowls, spout jars and broken potteries were found from the spot.
"The unearthed stone image is called Bhurisapta Padmapani, an incarnation of Lord Buddha. The idol is made of Khondolite stone and its height and width is 3 feet 2 inches and 2 feet 1 inch respectively. While one of its hands is seen in blessings giving posture, another hand holds a lotus," said Prusty.
In addition to the Buddha image, a monastery has been discovered on the foot of Kesharaipur-Hatikhol hill.
"The monastery is 30 x 30 metres in size. There are four rooms each measuring 10 feet x 9 feet each. It is made of good size stones. The Buddhist monastery has been probably built in the eighth century